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Agios Pharma (AGIO) Q4 Loss Narrower than Expected; Stock Up

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Agios Pharmaceuticals, Inc.AGIO posted fourth-quarter 2016 loss of $1.34 per share, narrower than the Zacks Consensus Estimate of a loss of $1.55 but wider than the year-ago loss of $1.08.

Shares gained more than 8% on Feb 16, 2017 following the earnings results. In fact, Agios's shares have outperformed the Zacks classified Medical-Products industry so far this year. The company's shares gained 15.8% compared with the industry's increase of 8.0%.

Agios does not have any approved product in its portfolio yet. Thus, its top line mainly comprises collaboration revenues and milestone payments. Total collaboration revenue in the fourth quarter amounted to approximately $22.6 million, which beat the Zacks Consensus Estimate of $8 million. Reported revenues were significantly higher than $6.2 million in the year-ago period.

Research & development expenses were up almost 75.1% year over year to $64.7 million. The increase was largely due to higher investments associated with the advancement of the company's lead investigational medicines into late-stage studies. General and administrative expenses increased 50% year over year to $15.4 million due to a rise in headcount and higher other professional expenses to support the expansion of its operations.

Pipeline Updates

The company currently has several candidates in its pipeline, including an IDH1 mutant inhibitor ivosidenib (AG-120), am IDH2 mutant inhibitor enasidenib (AG-221), and pan-IDH mutant inhibitor AG-881.

Enrollment in the expansion cohort for the phase I study on AG-120 in 125 patients with relapsed or refractory acute myeloid leukemia (R/R AML) was completed during the quarter. Agios also initiated a phase III study to evaluate AG-120 in front-line AML patients with an IDH1 mutation advanced cholangiocarcinoma. The company plans to submit a new drug application (NDA) to the FDA for AG-120 by the end of 2017.

Moreover, Agios and its partner Celgene Corporation CELG submitted a NDA for enasidenib in the U.S. for IDH2m positive relapsed/refractory (R/R) acute myeloid leukemia (AML) in the quarter. The NDA was based on data from an ongoing phase I/II trial in patients with R/R AML and other advanced hematologic malignancies. Approval of enasidenib in the U.S. is expected by the end of 2017.

Aditionally, Agios expects to complete the dose-escalation phase of the ongoing phase I study of AG-881 in IDHm positive glioma in the first half of 2017.

2016 Results

Full-year sales increased 18.2% year over year to $69.9 million. Sales beat the Zacks Consensus Estimate of $55.3 million.

The full-year loss of $5.07 per share was also narrower than Zacks Consensus Estimate of a loss of $5.28 per share. The company had incurred loss of $3.15 per share a year ago.

Agios Pharmaceuticals, Inc. Price, Consensus and EPS Surprise

Agios Pharmaceuticals, Inc. Price, Consensus and EPS Surprise | Agios Pharmaceuticals, Inc. Quote

Zacks Rank & Key Picks

Agios currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care sector include Cytokinetics, Incorporated CYTK and Sunesis Pharmaceuticals, Inc. SNSS . Each of these stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Cytokinetics' loss per share estimates narrowed from 12 cents to 3 cents for 2016 and from $1.67 to 42 cents for 2017 over the last 60 days. The company posted positive earnings surprises in three of the four trailing quarters with an average beat of 102.93%.

Sunesis' loss per share estimates narrowed from $2.57 to $2.44 for 2016 and from $2.16 to $1.97 for 2017 over the last 60 days. The company posted a positive earnings surprise in three of the four trailing quarters with an average beat of 0.54%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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